Board authorizes contingent $5 million line of credit to manage seasonal cash shortfall
Summary
Trustees approved a contingent revolving line of credit with Nebraska Land Bank (initial $5 million, 4.5% fixed interest, $2,150 origination fee) to cover temporary cash‑flow shortfalls while waiting on major receipts. District finance director said prior seasonal draws were paid off by March.
The North Platte Public Schools board on Dec. 8 authorized the superintendent to secure a revolving line of credit with Nebraska Land Bank if needed to manage seasonal cash shortfalls.
Dr. McDonald, the district finance director, told trustees the proposed facility would start with a $5,000,000 credit limit at a fixed 4.5% interest rate with an origination fee of $2,150. He said the board could request an increase to $10,000,000 within 15 days if necessary; an additional $4,000 origination fee would apply in that case.
McDonald said the district’s general fund showed a timing‑related negative cash position driven by November expenditures and the timing of large receipts such as property taxes and state aid. “We are at negative $3,079,884.43,” he told the board, adding that the district uses interfund loans and seasonal lines of credit to bridge timing gaps and that prior seasonal draws (reported as $1.5 million in December and $2.5 million in January in the prior year) were repaid by March.
Trustees asked for reporting on usage and interest cost if the district draws on the line; McDonald agreed to provide follow‑up information. Board members stressed that use of short‑term credit is a contingency measure while the district continues efforts to rebuild cash reserves.
The motion to approve the line of credit if needed was moved and seconded and passed on roll call. Trustees asked administration to report back to the board with details about any draw, timing and interest expense.
